BUMP IN THE ROAD

Spain’s soaring industrial output hit by unexpected slump in April

SPAIN’S economic good times hit another bump in the road after preliminary data revealed an unexpected decline in the country’s industrial pro -

WHAT ARE THE TAX BENEFITS OF INVESTING IN A QNUPS?

AQNUPS (Qualifying Non-UK Pension Scheme) is an offshore unapproved pension arrangement which satisfies the definition of a pension scheme as set out in Section 150 of The UK Finance Act 2004. It is classed as an unapproved pension arrangement because contributions made into the scheme are not eligible for UK tax relief. However, these schemes are fully recognised by HMRC as defined by UK legislation. QNUPS have become an increasingly popular investment vehicle for British expats in Spain looking to diversify their retirement savings. A Qualifying Non-UK Pension Scheme can offer several tax benefits.

The Tax Benefits

Lump sum investments into the scheme are immediately outside of your estate for UK inheritance tax purposes whether you remain abroad or return to the UK.

If you nominate your spouse as a beneficiary, when you pass away, a Spanish succession tax liability is not triggered, provided the pension is drawn in the same tax efficient manner. When your spouse passes away, if your ultimate beneficiaries, say your children, live outside of Spain, no Spanish succession tax is due.

If you structure your pension income in the form of an annuity the effective tax rate is anywhere between 2% and 6% - dependent on the amount you draw as an income, the length of the annuity and progressive tax rates in your autonomous region.

Your investments can continue to grow within the pension structure free of Spanish capital gains tax.

It may offer asset protection against creditors and legal claims and in some cases may be exempt from claims made against you in bankruptcy. It provides a high degree of flexibility in terms of investment options enabling you to diversify risk and potentially increase your returns

Points to Consider:

Whilst there are no specific guidelines regarding the level of post-tax contributions you can make, these must be reasonable and commensurate with your overall wealth, earnings, age and future income requirements to avoid being captured by UK Income Tax anti-avoidance provisions.

To pay the minimal amount of tax on pension income your annuity contract must be fixed during your lifetime which means you must consider maximum income requirements at the outset. If you break your annuity contract pension income gets taxed at Spanish marginal rates.

The Spanish Tax Office is now insisting that annuities are paid out of an insurance policy. This means that pension assets must be held an insurance policy for greater tax efficiency. It's essential to seek professional advice and carefully consider all the pros and cons before making any decisions.

If your investments have produced a negative return in 2022 please take the opportunity to book a second opinion consultation.

If you feel you would benefit from a second opinion please email enquiries@fwm.gi or call us on tel: +44 207 998 0570

Our financial advisers are fully licensed, qualified and regulated to provide financial advice in Spain and across the EU. www.fiduciarywealth.gi ● www.financialplanningspain.com

By Walter Finch

duction in April.

The report, from national statistics agency INE, indicates that output across all sectors, except capital goods, contracted.

It marks a disappointing reversal from the 4.1% growth experienced in March, as economists had hoped for a 1.5% increase.

In fact during April, industrial production decreased by 0.9% from last year.

On an unadjusted basis, industrial output fell by 4%, contrasting with the 5.4%recovery seen in the preceding month.

The contraction in industrial production was primarily driven by a significant 4.9% fall in the

CASH ‘PHISHERS’

TWO MEN have been arrested in Benidorm for illegally obtaining bank account and credit card details via phone text messages, which netted them around €50,000.

The Spaniard and Italian, aged 31 and 37 years, deceived at least 50 people in the scam known as ‘phishing’.

The men sent out text messages to targets pretending to come from banks, with clients asked to enter in their personal details in addition to all of the information related to their credit cards. Once the duo had the card numbers and CVV security codes, they passed them onto colleagues so that they could make illegal withdrawals or purchases.

OP Puzzle solutions

Quick Crossword durable consumer goods division, closely followed by a 4.3% decrease in intermediate goods output. Meanwhile, production of energy items slid by 1.5%. However, there was a silver lining as the output of capital goods demonstrated resilience by advancing 3.2%.

Across: 7 Tentacle, 8 Ills, 9 Tartan, 10 Metric, 11 Send up, 13 Corner, 14 Per, 15 Nieces, 17 Oppose, 19 Odessa, 21 Karate, 23 Mayo, 24 Maryland.

Down: 1 Behave, 2 Stet, 3 Schnapps, 4 Ream, 5 Gift wrap, 6 Alpine, 12 Decision, 13 Crockery, 16 Indian, 18 Satiny, 20 Arms, 22 Rule.

Decline

Looking at the month-onmonth figures, industrial output experienced a substantial decline of 1.8% in April, in stark contrast to the 1.3% increase observed in March.

This decline represents the largest drop in 13 months, adding to the surprise and concern surrounding Spain’s industrial sector performance.

REGISTRATION for summer discounts of up to 90% on trains for youngsters between 18 and 30 has opened.

The government will also fund half the cost of European Interrail passes and 90% of state bus tickets between June 15 and September 15.

Anyone interested needs to register by contacting the Ministry of Transport.

Feel like waiting six months for your fast food?

McDonald’s think you do

FAST food kings McDonald’s has launched an advertising campaign in Spain to illustrate just how long it takes to get your order so quickly.

To the shock of customers it apparently takes six months, the burger giant claims.

In the ad, 'An Order Worth Waiting For’ customers